Government-backed programme to fund ‘good causes’ launches

24 September 2012

A government-backed pilot scheme, which could lead to millions
of pounds being invested in charities struggling to raise money
from High Street banks, is to be launched today by the Charities
Aid Foundation (CAF), Legal & General and Minister for
Social Enterprise Jo Swinson.

The programme has the potential to deliver millions of pounds of
social investment to a wide range of charities and not-for-profit
organisations currently struggling to raise funding during the
recession.

The pilot, which if successful could be rolled out nationwide,
will offer charities and other social enterprises in the Brighton
and Hove area interest free loans, mentors and expert business
advice.

It is being funded with £65,000 from the Cabinet Office-funded
Innovation in Giving Fund, managed by Nesta, and £50,000 from
Legal & General.

A launch takes place today in Brighton at a not-for-profit
organisation that works with people with learning difficulties and
mental health needs. Speakers include Minister for Social
Enterprise Jo Swinson, Brighton Pavilion MP Caroline Lucas and CAF
Chief Executive John Low.

Under the Social Enterprise Assist (SE-Assist) scheme,
fledgling social enterprises will be offered interest free loans of
up to £10,000 as well as mentoring from Legal & General staff,
and up to £5,000 worth of expert consultancy.

The scheme, if rolled out, would transform local communities by
providing funding for hundreds of social enterprises across the UK.
These social enterprises will help to tackle social issues in local
areas while boosting the local economy. The scheme has the
potential to help thousands of people.

The programme would encourage local companies to invest time and
money to support this important sector of the economy.

John Low, Chief Executive of the Charities Aid Foundation, said:
“Social enterprises have the power to tackle many intractable
problems in our communities, but often flounder because commercial
lenders regard them as too risky to support.

“There is still a chronic lack of funding for fledgling social
enterprises which are looking to expand. We need lenders to step in
and back these dynamic social enterprises with hard cash and
business advice so they have the support they need to succeed.
These entrepreneurial organisations can make a massive difference,
supporting some of the most vulnerable people in society.

“Without this sort of backing the Government’s vision of a
greater role for community groups, social enterprises and charities
in delivering local services will remain aspirational.

“We need others in financial services to follow the great lead
shown by Legal & General in providing start up capital and
vital business advice which can get great projects off the
ground.”